By John Lee.

In its final results for the year ended 31st December 2012, oil and gas service provider Petrofac issued the following updates on its operations in Iraq:

Badra oilfield development project, Iraq

In February 2012, we were awarded a US$330 million lump-sum EPC contract by Gazprom for the first phase of the Badra oilfield development project. We are providing detailed design, engineering, procurement, construction, pre-commissioning, commissioning and start-up work on the Badra development’s central processing facility, which comprises three crude oil processing trains. The first phase of the project is expected to come on stream in the second half of 2013, with final completion scheduled during the second half of 2015.

Inspection, maintenance and repair contract, Iraq

In November 2012, we won a further inspection, maintenance and repair contract for the Rumaila oil field in southern Iraq with our joint venture partner, China Petroleum Engineering & Construction Corporation (CPECC). The US$229 million contract was awarded by BP Iraq NV (BP), via the Rumaila Operating Organisation (ROO), following a competitive tender. The three-year contract, which is worth more than US$160 million to Petrofac, covers the inspection, maintenance and repair of degassing stations, rotating machinery and cluster pumping stations and came into effect on 1 November 2012.

Offshore operations contract, Iraq

In August 2012, we secured a contract worth approximately US$100 million to provide offshore operations and maintenance services for the Iraq Crude Oil Expansion Project. Awarded by Iraq’s South Oil Company (SOC), the 12-month contract commenced following a three-month mobilisation period. There is also additional scope for the contract to be extended via two one-year contract extension options. Offshore Projects & Operations will provide operations and maintenance services for the new oil export facilities situated approximately 60 kilometres offshore the Al Fao Peninsula in southern Iraq. The facilities include: an offshore platform, metering station, single point moorings, subsea pipelines and tanker operations.

(Source: Petrofac)

By John Lee.

The Kurdistan Regional Government is reported to have signed new agreements with Gazprom Neft, the oil-producing subsidiary of Russian gas monopoly Gazprom.

“We are satisfied with Gazprom Neft’s work in the region. New agreements have been reached with this Russian company in recent days,” KRG President Masoud Barzani (pictured) was quoted as saying by news agency Interfax.

Gazprom acquired interests in two Kurdistan blocks last August, but also has a contract with the Oil Ministry in Baghdad for the Badra oilfield in the South of the country.

(Source: upstreamonline)

By John Lee.

Iraq and the Russian state oil producer Gazprom Neft have awarded an $879 million contract to South Korea’s Samsung Group to develop the Badra oil field in eastern Iraq.

Samsung will design and build phase two of a central processing facility (CPF) for oil production in the field, which is expected to take two years to complete.

Dow Jones reports that initial production from the field is expected to be 15,000 bpd at the end of September this year, increasing to 170,000 bpd by 2017, according to the development plan agreed with the Iraqi government.

The field is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Lead partner Gazprom angered Baghdad by signing a contract with the Kurdistan Regional Government; Baghdad has asked Gazprom to choose between its contract in Kurdistan and the Badra oil field.

(Source: Dow Jones)

 By John Lee.

The Iraqi Government has reportedly told Gazprom Neft, the oil arm of Russian gas export monopoly Gazprom, to abandon oil deals in Kurdistan or face losing the lucrative Badra oilfield contract.

The field, which is estimated to have reserves of 100 million barrels, is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Faisal Abdullah, a spokesman for Deputy Prime Minister for Energy Hussain Shahristani, confirmed on Friday that a letter had been sent to Gazprom last week warning the company, which acquired interests in two blocks with the Kurdistan Regional Government (KRG) in August.

According to Reuters, Gazprom Neft Chief Operating Officer Alexander Dyukov (pictured) declined to comment. The company reportedly denied freezing contracts in Kurdistan in October.

(Sources: BBC, Reuters)

Alderley FZE, a subsidiary of Alderley plc, has recently secured contracts for two crude oil metering systems in Iraq.

The contracts for both projects were issued by Petrofac, the international oil and gas facilities service provider, for the new Early Production System (EPS) for the Majnoon field in southern Iraq and for the first phase of the Badra Oilfield Development Project.

The Alderley FZE scope of supply for the Shell Early Production Facilities Project – Majnoon is for the provision of a Crude Oil metering system comprising 2 x 50% 14” duty meter streams with 10” ultrasonic meters, master meter stream, fast loop sampling and Containerized Control room with the associated flow computing equipment. The operator Shell holds a 45% stake in all licences, while Petronas and Iraqi Ministry of Oil hold 30% and 25% of interest.

The Alderley FZE scope of supply, for Gazprom Neft (Gazprom) Badra Oilfield Development project, is to provide a Liquid Ultrasonic metering system comprising 3 x 50% Ultrasonic Meter runs, bi-directional prover and analyser system along with the associated control systems. The Badra Oilfield Development Project is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Eric Maddock, Group Business Development Manager, Alderley comments, “These two projects are the first projects Alderley have won in the country since sanctions were dropped. This puts us in the perfect place to participate in the development of the country and support Iraq’s future needs in the oil and gas industry.”

The systems are being designed and manufactured at Alderley FZE’s facility in Jebel Ali, United Arab Emirates. Alderley FZE is part of the Alderley Group and is the firm’s largest operating company overseas. Alderley FZE provides the full range of services for engineering, supply and operation of bespoke metering and produced water treatment solutions to the oil and gas industry.

(Source: Alderley)

(Picture: Alderley ultrasonic oil meter)

Halliburton has won a $95 million contract from Russian state oil producer Gazprom Neft to test and complete 11 wells at its Badra oil field in eastern Iraq, according to the Wall Street Journal.

Gazprom said testing of the first well is scheduled to start in the third quarter of this year. “Production will commence once the final field development plan is completed in 2013,” the Russian firm said.

The field, which has estimated reserves of 100 million barrels of oil, is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

(Source: Wall Street Journal)

Russia’s Gazprom Neft is expecting to start exporting from its East Badrah oil field in Wasit [Wassit] province early next year, according to AKnews.

Alexander V Kolomatsky, Project director for the Middle East at Gazprom, said the company had initially planned to reach the 15,000 bpd level by the last quarter of 2013 because the oil field, which is near Iraq’s border with Iran, had to be first cleared of landmines.

But progress in the de-mining work however has led to this figure being pulled forward to early 2013, with 60,000 bpd expected by mid year, and 120,000 bpd by the beginning of 2014.

The field, which has estimated reserves of 100 million barrels of oil, is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

(Source: AKnews. Iraq Energy)

Leading international well flow management company Expro has secured three further contract wins in Iraq. The trio of contract awards adds to the recent contract success with ENI.

Expro will undertake analysis of more than 100 PVT studies in a contract award with Gazprom in the Badra field situated close to the Iranian border.

Gazprom is critical for Expro as it has positioned Expro in the central part of Iraq. It is also the first PVT contract for Expro with Gazprom.

Two further contract awards with large operators in the south of Iraq involve further PVT sampling studies and laboratory work.

Expro will utilise its Iraqi capabilities as well as its fluids analysis centre (FAC) and analytical data services (ADS) teams in the UK to conduct more than 200 PVT studies.

Expro made significant investment throughout 2010 and 2011 in preparation for activity in Iraq in 2012 and beyond.

Expro’s fluids product line director, Bill Smith, said:

“A trio of recent contract wins with major operators has further strengthened Expro’s profile in the region and positions us as the preferred fluids choice in a highly lucrative and competitive marketplace. This is a solid start to 2012 as we look forward to further enhancing our profile in the region as the year progresses.“

Expro is an established leader in the field of well flow management, and throughout its service offers the expertise and experience borne of many years as an industry leader.

Expro’s engineering expertise and flexibility to meet the specific needs of its customers allows it to offer integrated solutions to well flow management challenges, at every stage of the well lifecycle.